Skip to main content
We're here with practical information for your business. Learn about business planning, running a business and more.

Search

For a successful business, you need a viable business idea, the skills to make it work and the funding. Discover whether your idea has what it takes.

Forming your business correctly is essential to ensure you are protected and you comply with the rules. Learn how to set up your business.

It is likely you will need funding to start your business unless you have your own money. Discover some of the main sources of start up funding.

Businesses and individuals must account for and pay various taxes. Understand your tax obligations and how to file, account and pay any taxes you owe.

Businesses are required to comply with a wide range of business laws. We introduce the main rules and regulations you must comply with.

Learn why business planning is an essential exercise if your business is to start and grow successfully, attract funding or target new markets.

Marketing matters. It drives sales and helps promote your brand and products. Discover how to market your business and reach your target customers.

Some businesses need a high street location whilst others can be run from home. Understand the key factors from cost to location, size to security.

Your employees can your biggest asset. They can also be your biggest challenge. We explain how to recruitment and manage staff successfully.

It is likely your business could not function without some form of IT. Learn how to specify, buy, maintain and secure your business IT.

Few businesses manage the leap from start up to high-growth business. Learn what it takes to scale up and take your business to the next level.

Q&A: Employment contracts – the basics

Jonathan Dale of Andrew Jackson solicitors explains employment contracts, what a written statement of employment must contain and the importance of honouring the terms of employment

At what point does an employment contract exist?

As soon as you offer someone a job - even verbally, if they accept. Contract terms can be verbal, written or implied, but having a written contract removes any doubt on either side about what is expected. If you don't give your employees an employment contract, you must at least provide them with a written statement of employment.

When must I provide a written statement of employment?

You must provide all workers and employees with a written statement on or before the first day of work. It's not an employment contract, but it details the key employment terms and conditions, which is useful should any disagreements arise, especially if the matter goes to an Employment Tribunal. If it contains all the information usually found within a written statement, issuing an employment contract is sufficient.

Must I provide a written statement to everyone who works for me?

The right to a written statement was extended to all workers on 6 April 2020 as part of the 'good work plan'. Previously you only had to provide a statement to employees within two months of work commencing.

What should I include within the written statement of employment?

Key employment particulars can be contained in a 'principal statement'. This can be part of the employment contract. The principal statement should include:

  • name of employee and business;
  • job title, description and start date;
  • details of any probationary period;
  • location, hours and days of the week the worker is required to work and whether they can be varied and how;
  • details of pay (including amount and frequency);
  • holiday and paid leave entitlement;
  • any benefits not covered elsewhere in the statement;
  • details of any employer-provided training;
  • notice period;
  • grievance, disciplinary and dismissal procedures (or where to find details);
  • sick pay (or where to find details);
  • length of employment (if fixed term or temporary);
  • pension details;
  • details of any relevant collective agreements.

What if I don't provide a written statement of employment?

An employee can refer you to an Employment Tribunal, which they can also do if you don't get their agreement before changing their written statement. If an employee successfully brings another claim against you, you can also be made to pay further compensation for not providing a written statement of employment or changing terms with agreement.

What are the 'implied terms' of an employment contract?

Provisions that an employee can rightfully expect to exist without being expressed, such as a safe and healthy workplace. Other implied terms include that the employee should be honest and loyal, a relationship of trust and confidence between them and you, etc. Many rights - such as paid holidays, fair and equal treatment and National Minimum Wage - are statutory, so the employee also has the right to expect these.

Can I change my employees' contracts?

Not without their written agreement. Otherwise, they could take legal action against you for breach of contract - or resign and claim constructive dismissal. If you want to change a written statement, you must consult with your employees first. Explain to them the reason for wanting to make the change and seek their written agreement.

At what other times can I be guilty of breach of contract?

If an employee suffers loss because you don't observe the terms of their employment contract, a tribunal could award an employee damages. However, you might be able to make a counter-claim if your business has suffered as a result of the employee's failure to obey their employment contract terms.

Stay up-to-date with business advice and news

Sign up to this lively and colourful newsletter for new and more established small businesses.